The FBMKLCI is expected to trend higher towards the 1,450 level next week, on the back of higher Malaysian producer price index (PPI) data in September.
Inter-Pacific Asset Management Bhd chief economist and fund manager Datuk Dr Nazri Khan said the volume on Bursa Malaysia is doing great as the earnings season has kick-started and many companies are doing well.
“We can foresee global sentiment improving after falling in the last couple of days, and the interest rate is not likely to be a major catalyst next week, after the European Central Bank (ECB) held the rate steady,” he told Bernama.
According to news reports, the ECB’s key interest rate will remain at 4% after it opted to pause in October following 10 consecutive hikes, which would help bring inflation to the target if maintained for a sufficiently long duration.
“Current catalysts such as the digital economy and electric vehicle sectors play are likely to drive local sentiments,” Nazri explained.
Going forward, he anticipates the support level to range between 1,430 and 1,440, with resistance at 1,450 to 1,480.
Malaysia’s PPI rebounded 0.2% in September 2023, against a contraction of 2.2% in August 2023, contributed by all sectors except the manufacturing sector.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng advised investors to stay alert for the increasing market volatility and external uncertainties.
“The benchmark index has remained within a narrow range for nearly three weeks, and has established a fresh breakout level at approximately the 1,445 mark,” he said.
On a Friday-on-Friday basis, the KLCI gained 0.86 of a point to end the week at 1,441.90, versus 1,441.04 a week earlier.
On the index board, the FBM Emas Index was 13.56 points firmer at 10,634.00, the FBMT 100 Index better 903 points to 10,307.01, the FBM 70 Index rose 24.83 points to 13,997.71, while the FBM Emas Shariah Index went down 13.83 points to 10,846.12, and the FBM ACE Index shed 91.42 points to 5,038.27.
Sector-wise, the Financial Services Index improved 43.04 points to 16,233.37, and the Industrial Products and Services Index inched up 0.34 of a point to 172.73.
However, the Plantation Index decreased 20.48 points to 6,888.85, and the Energy Index lost 6.50 points to 874.58.
Weekly turnover decreased marginally to 15.10 billion units worth RM9.40 billion, versus 15.76 billion units worth RM10.5 billion in the preceding week.
The Main Market volume improved to 9.57 billion shares worth RM8.04 billion, against 9.46 billion shares worth RM8.98 billion in the previous week.
Warrant turnover was lower to 1.64 billion units worth RM214.44 million, from 1.74 billion units worth RM208.59 million last week.
The ACE Market volume dropped to 3.82 billion shares worth RM1.13 billion, from 4.49 billion shares worth RM1.28 billion previously.
